Vermilion Energy Inc. (VET) stock plunged 10.46% in the pre-market trading session at the price of $8.90 despite no fundamental reason. The last reported news was its financial results for the three and nine months ended on 30th September 2021.
VET is a global producer of energy that creates value through the research, acquisition, development, and optimization of assets in North America, Australia, and Europe.
VET Third Quarter 2021 Financial Results
On 9th November 2021, VET announced its financial results for the three and nine months ended on 30th September 2021 and published corporate updates.
VET Financial Highlights
For the third quarter of 2021, VET reported $263 million in fund flows from operations. It represents a gain of 52% from the third quarter of the previous year. The increase during the third quarter of 2021 resulted from higher commodity prices. For the third quarter ended 30th September 2021, E&D capital expenses totaled $66 million. It includes a free cash flow of $196 million and a payout ratio of 27% including abandonment and reclamation charges.
For the third quarter of 2021, production averaged 84,633 boe/d. VET reported production of 57,022 boe/d from its North American assets during the third quarter of 2021. It represents a drop of 2% from the same three months of 2020. During the third quarter of 2021, production from International assets totaled 27,612 boe/d. It is a decrease of 1% from the three months ended 30th September 2020.
For the first nine months ended 30th September 2021, VET has produced an FCF of $369 million. The company has reduced net debt by approximately $231 million as of 30th September 2021. The board of directors has raised the company’s 2021 capital program from $75 million to $375 million.
Financial Outlook
VET expects FCF of $600 million and net debt of $1 billion by the end of the year. It expects to generate free cash flow of $500 million, or per share of $3.00, in 2021. The company anticipates production to range from 83,000 boe/d to 85,000 boe/d. The 2022 capital program has expected to range from $400 million to $450 million.
